Expert: Dottie Worthington - 7/17/2008

Question
QUESTION: I WAS JUST INFORMED THAT THE HOUSE I BID ON AND BID WAS ACCEPTED. IS BEING SOLD OUT FROM UNDER ME. MY REAL ESTATE AGENT DID ALL THE TALKING TO THE SELLERS AGENT. THERE WAS A CONTRACT ON THE HOUSE BUT THE BUYER NEEDED TO SELL THE HOUSE THEY LIVED IN BEFORE THEY COULD BUY THIS ONE. I SIGNED A CONTRACT AND PUT UP $100 TO THE SELLER AND $500 TO THE TITLE CO. THE SELLERS AGENT WANTED THE CONTRACT WORDED DIFFERENT AND MARKED OUT AND REWROTE THE CONTRACT. I READ IT AND WAS TOLD IT WAS THE SAME AND SO I SIGNED IT AND WAS GIVEN MY $500 BACK AND HAD TO GIVE $1600 FOR THE TITLE CO. I WAS ALSO INFORMED THAT THE ORIGINAL BUYERS HAD 3 DAYS TO COMPLETE THEIR CONTRACT. THIS WAS WEDNESDAY 7/9/08. THURSDAY 7/10/08 MY AGENT CALLED AND HAD ANOTHER CHANGE ON A LEAD PAINT ADDENDUM. I HAD CHECKED OPTION 1 IN BOTH CASES. HE WANTED OPTION 2. I ACCEPTED BEING TOLD THAT THE OTHER BUYERS WERE BACKING OUT . AT THIS POINT THIS HAS BEEN GOING ON SINCE 06/28/08. THE SELLERS AGENT HAD SOME EXCUSE TO BE OUT OF POCKET NEARLY EVERY TIME HE WAS NEEDED. I HAD TO TAKE OFF WORK SEVERAL TIMES TO MEET WITH HIS TERMS BEING TOLD BY MY AGENT THAT WE HAD A DEAL. IT TURNS OUT HE WAS ONLY STALLING SO THAT THE OTHER BUYER COULD WORK SOMETHING OUT. I FIND OUT THAT TODAY 07/14/08 THAT THE THREE DAYS STARTS TODAY. I FEEL JILTED AND LIED TO. I THINK THAT THIS IS UNETHICAL AND FEEL THAT I AM OWED SOMETHING FOR THE TIME I HAVE INVESTED IN THIS. I DON'T UNDERSTAND HOW HE COULD JUST LOOK AT US AND LIE. DID HE COMMIT SOME KIND IF FRAUD.
PLEASE HELP ME TO UNDERSTAND.

ANSWER: Nathan, I am sorry to hear this. I would be interested to know if the actual sale was in the seller's agency? Was this a short sale or foreclosure? You should not be out of any money, and if your money was receited at a Title Company then you had a deal.
Yes, it sounds like you may have a case to take up with the Title Company and the selling agent. What has your buyers agent done to protect you?

---------- FOLLOW-UP ----------

QUESTION: Dear Mrs. Worthington,
Thank you for your quick response. I do think that the actual sell was in the sellers agency. I don't know if it was a short sale or not. My agent relayed all information to us and on Wednesday 07/09/08, she, her broker and my mortgage broker met with his broker and him to discuss the contract and at that time my agent and lender both understood that we had a deal. This is the contract I signed and gave a check for $1600. My loan broker started the application process at this time (7/11/08) and ordered the appraisal, title work and insurance binder. The insurance company faxed me the policy and I was to sign it and fax it back. I don't think that sellers agent ever processed the contract, I think that he used us to force his original buyer to somehow acquire the funding that they have been unable to do for three months because they had to sell the house they currently lived in. All the people I dealt with talked with him and all agree that I was going to buy this house. I don't know yet weather my money was sent to the Title Company. I do know that he mislead all of us by telling us that we had a deal and let us proceed with our loan. I had to contact my loan broker on Sunday so that we could stop any transaction. He to has never seen this happen this far in a deal. I just think that this agent has broken ethics of real estate. I think he is smart enough to not have broken any laws but he used fraudulent tactics by stringing us along and it also appears that he used us to pressure the other buyer to move forward somehow. I also think that he didn't represent the home seller the way that he should have because they could be much closer to getting their money then they are. Please tell me if this is legal or not.

ANSWER: Nathan, I can't tell if anything illegal was done, but it does sound like you have a case for a complaint to his Board of Realtors. Call the Board where that selling agent is a member and ask them for the prodedure to do that.

---------- FOLLOW-UP ----------

QUESTION: Dear Mrs. Worthington,
Yesterday evening I got a copy of my contract and it has all signatures on it and was effective as of 07/10/08 meaning that the other buyer has until the end of the day on 07/12/08 to move forward. They indeed moved forward on the 12th and this seems to be why I lost out. My Realtor tells me that if they can't get the loan that I am still the back-up contract. I don't understand, I thought that they had only three days and now that isn't even an issue. I thought that they would have to have the money by the end of the third day. Why have three day at all because all they had to do was say they could get a loan and try to get a Lending Company to loan them the money anyway? Maybe I am just not understanding this. It seems to me that even if their debt to income is still the same that this could be just another stall tactic. Now it looks like the sellers agent is just trying to keep me involved in case that their loan isn't approved. If they don't have a loan why is it that the three days didn't terminate their contract? At this rate this could go on for awhile. Thank you for your valuable information. You have been the only person that have tried to help me understand.


Answer
If you have not signed a back up addendum, then you are not back up on anything. I believe if I was you, I would move on to another REALTOR and another house. Check and see who has been in the business in your area for a long time, and maybe is a Board member at the local Board of Realtors.